Bank of America profit surges, but misses Street estimates

Though Bank of America Corp. saw a surge in first-quarter profits, it missed Wall Street estimates by 2 cents a share.

The bank reported quarterly net income of $2.25 billion, or 20 cents a share, compared with net income of $328 million, or 3 cents a share in 2012. Analysts polled by Thomson Reuters had projected 22 cents a share.

Excluding special items, net income was $2.6 billion, or 21 cents a share.

The improvement in income was the result of a drop in quarterly expenses, officials from the Charlotte, N.C.-based bank reported. That was offset by a $500 million payment to settle three lawsuits involving mortgage-backed securities and subprime lender Countrywide Financial Corp., acquired by Bank of America in 2008.

Revenue, net of interest expense, on a fully taxable-equivalent basis rose 5 percent to $23.7 billion from $22.5 billion a year ago, the financial institution said. Adjusted revenue fell to $23.85 billion from 26 billion a year ago.

Bank of America N.A. ranks eighth in the Rochester market with local deposits of $740.7 million, data from the Federal Deposit Insurance Corp. shows.

Its shares (NYSE: BAC) were trading late afternoon at $11.65, down 5 percent from Tuesday’s close.